Bond Sales Up for Second Week

AT&T leads U.S. corporates issuing $17.4 bln as relative yields tighten.

Sales of U.S. corporate bonds rose for the second straight week, the first back-to-back gain in three months, as borrowers took advantage of tightening relative yields.

AT&T Inc., the largest U.S. phone company, and Louisville, Colorado-based Zayo Group LLC led borrowers issuing $17.4 billion, a 6 percent increase from the five days ended June 8, according to data compiled by Bloomberg. The extra yield investors demand to hold corporate debt rather than Treasuries with similar maturities narrowed 3 basis points this week through yesterday to 315 basis points, or 3.15 percentage points, according to Bank of America Merrill Lynch’s U.S. Corporate & High Yield Master index.

Investment Grade

Investment-grade sales fell this week, with borrowers issuing $15.7 billion of notes, after $16 billion in the previous week, Bloomberg data show.

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